SHAFAQNA- Several OPEC+ countries, including Saudi Arabia and Russia, have begun reducing their oil production voluntarily by an aggregate additional volume of 2.2 mln barrels per day (bpd) in January. The policy will be in effect throughout the first quarter and the petroleum producers’ cartel may begin increasingly returning reduced volumes to the market depending on market conditions.
After the November 30 OPEC+ summit, the member countries of the cartel decided on further voluntary cuts in oil output in order to reach a balance in the market.
Besides fresh cuts, several OPEC+ members will still fulfill their agreements to reduce output by 1.66 mln bpd by the end of 2024. This measure has been in force since May 2023. Simultaneously, as part of the OPEC+ agreement, revised oil production quotas will become effective in 2024.
Source: tass